Payoffs of Digitizing Timesheets [Ranked by Organization Size]

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October 3, 2024 Business

Time management is an essential skill that keeps companies and their teams organized and on top of projects.

Now, when it comes to time management, digital timesheets are a game-changer. They provide a clear, detailed record of how employees spend their workdays, making time tracking easy and accurate.

And if you’ve ever given digital time tracking a chance, you know its benefits are felt by everyone And if you’ve ever given time tracking a chance, you know its benefits are felt by everyone involved:

Teams can see more clearly how their time is spent, helping them to stay focused and meet deadlines more effectively.
Management can use time tracking to get real-time insights into project progress, improving their decision-making and operational efficiency.
And thanks to time tracking, clients enjoy transparent, accurate time reports and billing, ensuring they only pay for the work that’s actually completed.

Overall, using timesheets is an excellent choice for anyone who wants to take charge of their time, whether for themselves or their team.

So, in this article, we’ll discuss the advantages of using digital timesheets and break down the specific payoffs for organizations of different sizes.

Let’s get started.

But first, what is a timesheet?

A timesheet, traditionally a paper timesheet, is exactly what it sounds like—a sheet of paper used to track time spent on tasks. Paper timesheets have been used for decades to keep records of one’s time, measure productivity, and bill clients.

Paper timesheets were first introduced in the 1950s, when a then-new unit of measure was created: the billable hour. Billable and non-billable hours became a significant part of every project, and workers tracked their tasks by hand using paper timesheets, all to discover how long it took them to do a particular task.

Fast-forward seven decades, and the days of paper and pencil are long gone. Thanks to digitization and digital timesheets, companies no longer need to store piles of paper records.

However, early digital timesheets still required manual entries—workers had to type in their name, task, description, and start/stop times. While an improvement, it still involved some administrative work.

Luckily for everyone, digitization didn’t stop there. We are living in the golden age of automated digital timesheets. Automated timesheets are like the self-driving cars of time tracking: no more manual work required. There’s no more filling out timesheets, as time tracking apps track work hours for you, helping users create time entries and populate timesheets in just a few clicks. Here you can get a full breakdown on how timesheet automation works.

All in all, timekeeping has come a long way. Nowadays, you (and your team) don’t have to rely on memory to know how much time you spent on tasks. You don’t even have to use a classic timer to record time. Automated time tracking tools take care of it all, so you can focus on what matters—getting the work done.

Benefits of using automated digital timesheets

Using paper timesheets was like being stuck in Jurassic Park: outdated, inefficient, and just one mistake away from chaos. A single error made in your paper timesheets could trigger several issues that could have easily been avoided.

On the flip side, digital timesheets, especially the automated ones, work like a well-oiled machine: streamlined, efficient, and designed to minimize time tracking errors.

Modern time tracking apps offer accurate records of when employees clock in and out, which helps prevent fraud (promoting transparent communication with clients) and gives managers valuable insights to boost productivity and efficiency.

Here’s a list of top five benefits of using digital timesheets.

Data is stored securely, and the risk of it being lost is minimal. With digital timesheets, you don’t have to worry about having a separate drawer for timesheets on your desk; all time tracking information is stored securely, either on the cloud or on your device.
Digital timesheets save time. Your time tracking data is always just a click away, allowing you to cut time spent on administrative work and focus on your tasks without tedious paperwork.
Your company’s carbon footprint is reduced, as you won’t use as much paper. Meaning that digital timesheets are actually good for the environment.
Your HR department can calculate payrolls more efficiently. Since all employee time tracking data is stored securely, and never lost, HR can track employee hours and calculate payrolls accurately.
Using digital timesheets can save your business thousands of dollars. Since employees actually save time needed to track their time, they reduce operational costs significantly.

Payoffs of digital timesheets, ranked by organization size

Digitizing timesheets benefits organizations of all sizes.

For small businesses, it simplifies operations.
For mid-sized companies, digital timesheets offer scalability to handle their increasing workloads, more employees, and complex project tracking.
Large enterprises use digital timesheets to improve overall efficiency, easily handle more projects, and maintain accountability and transparency (so that project progress can be monitored properly across large teams).

Here’s a more in-depth look into how digitizing timesheets helps companies of various sizes.

Small businesses (1-50 employees)

When it comes to small businesses, digitizing timesheets saves time; there’s no time spent on manual entry, meaning employees can focus on core business activities. Moreover, using digital timesheets lowers overhead costs by reducing the need for admin work, and minimizes errors in time reporting.

We view using timesheets in small businesses as a way to embrace our human nature: while we can be forgetful of our time usage, we no longer have to worry about making mistakes that could lead to overservicing and undercharging clients.

Mid-size companies (51-500 employees)

Digital timesheets create the foundation for scalability because it provides a consistent solution; no matter how much the business expands, timesheets can keep up with the changes. These tools also seamlessly integrate with payroll and HR systems, providing in-depth reports and ensuring employees are compensated fairly.

Moreover, when using time tracking apps, mid-size companies are able to get insights into their teams’ productivity, labor costs and spot trends in employee utilization.

Large enterprises (500+ employees)

Using digital timesheets impacts departments across enterprises. It eliminates bottlenecks and ensures everyone is working towards improving efficiency. It also provides data that serves as a base for staffing, budgeting, and overall optimization.

Moreover, for enterprises that operate across regions and countries, digital timesheets help integrate labor laws and ensure compliance on a larger scale. For example, rules around working hours, overtime, breaks, and holidays differ from country to country, and managing these different aspects with paper-based time tracking would be impossible. Digital timesheets make managing compliance on a larger, regional scale a piece of cake.

To conclude

To return to our Jurassic-era metaphor, digital timesheets are the T-Rex of time management: powerful, and efficient. Just as the T-Rex was at the top of the food chain, digital timesheets dominate the manual methods and streamline processes.

Whether you’re running a small business/startup, scaling a mid-sized company, or leading a global enterprise, digital timesheets can help you do all the heavy lifting, like boosting productivity, cutting costs, and freeing time to focus on what matters. So, don’t be stuck in the stone age, and let the T-Rex of timekeeping take the wheel. 🙂